1. Discuss the global, local and Glocal Strategies of marketing mix components.
2. Discussion on the target market of Pizza Hut.
Marketing and communication are two key aspects which a particular company needs to take into account while working in the local as well as in the local market. It is extremely important to mention that most of the multinational companies nowadays are focused on developing a strong platform where they can work all around the world with a single marketing plan with little modifications. On the other hand communication is also an important aspect in the business which helps a company to implement its plans effectively (Czinkota & Ronakainen, 2013). There are number of factors that underpin global marketing in the contemporary business environment and hence it is extremely essential for companies to have a fair bit of knowledge about global marketing mix and its components. On the other hand it is also important for companies to develop target market. The present study will delve deep into the discussion of the two key components of marketing which are products and price and it will also entail discussion of the procedure of targeting regions for the sale of products and services and different discussions to underpin the study. The present study will be supported with the case study of Pizza Hut (Goi, 2009).
Pizza Hut is one of the world’s largest pizza chains with over 12000 pizza stations and delivery outlets in the world. The company has been able to gain huge market share with its unique product marketing and effective pricing. Pizza Hut as a brand has always focused on satisfying wide number of people in different segments and different target areas. In the recent past Pizza Hut has focused on exploring new markets which has had impetus on its marketing plan. Pizza Hut has come up with different marketing concepts which have helped the company to develop its global market. The company has always tried to have different marketing strategy for different regions which have helped it come closer to its targeted audience. Since the company has had different marketing strategies and have targeted different audience groups which makes the choice of Pizza Hut the case study company absolutely justified (Gordon, 2012).
Pizza Hut is a company that works worldwide and has wide and loyal customer base. It is important to mention that Pizza Hut tries to focus on the different target markets and hence it is important that the company understands the different strategies to address different markets. Pizza Hut targets the global market that makes it extremely important for the company to develop a strong marketing plan which would help the company to address a bigger market. The main focus of the company is to fulfill the objectives of the organisation which is to satisfy the customers. Since the company focuses on the worldwide business it becomes important that the company emphasises on its marketing plan (Kotler & Armstrong, 2010).
The company frames different plans for global business, for local business and finally for both the regions global and local. Even though the company lay stress on all the different components of marketing mix but it especially tries to focus on the two key aspects of the marketing mix which are products and price. Since the company focuses on the development of its business both locally and globally it has to work on these aspects effectively. For Pizza Hut working on these key aspects is important since the food industry is highly competitive and it has huge competition (Dann, 2010).
Pizza hut has a unique take on the local strategy Pizza Hut has always tried to target diverse population segments based on the demographics, psychographics and frame its marketing plan accordingly which would help the company to reach its target audience effectively. It is important to mention that the company addresses its local customers in different ways. The company comes up with different marketing mix strategies which helps the company to emphasise on its chosen market effectively. Pizza Hut’s local pricing and product strategy is largely influenced by the local market. Pizza Hut is mostly known for its Italian products which is pizza and hence the company tries to have unique approach to its products and pricing when addressing the local customers. Its unique strategy is focused on developing the local market. Pizza hut’s approach to its product development in the local market is done with the help of market research. The company focuses on selling the authentic pizzas and works on keeping the traditions. In its local market in USA the company focuses making quick tacos, hamburgers and pizzas which help people to meet their demands and needs. Pizza Hut has developed its local market mostly for quick breakfast in its outlets (Papadopoulos & Heslop, 2014). In Italy the place of origination of Pizzas the company has focused on developing a great market by introducing Tuscani Pizza which first came in Italy itself with thin crust and gourmet stuff. Its unique way of working globally and thinking locally also came into practice through its products where the company has been able to impress the older Italian adults by inviting them to taste the pizzas to test the quality of the product sold by the company in Italy which was a very much global policy but placed in a local manner. It is also important to mention that working in its local market in America Pizza Hut first introduced which has become a worldwide craze for people that is the Pan fried Pizza which has been highly appreciated by the local American citizens
Pricing strategy has always been a key factor for Pizza Hut in this highly competitive market. The price strategy of Pizza Hut is premium Price Skimming strategy where the price is kept fixed even if the demand is high or during the time when the demand is low. The price skimming procedure has helped the company to keep its standard in a higher level and has driven many consumers to buy from this company as many people love to buy expensive food just for self satisfaction (Ghauri & Cateora, 2010).
Pizza Hut is a global business and hence the company focuses on strategising its business as per the area it is serving. Global basis Pizza Hut’s product strategy has always been unique as the company has assessed each global market effectively and acted globally cum locally which has been an immensely effective product strategy for the company. For instance in Malaysia Pizza Hut introduced the famous Italian American Pan Pizza which has been largely appreciated by the consumers in the Malaysian market. In India with the help of effective promotion Pizza Hut has been able to capture the market and also in order to continue with its “Think Global Act Local” campaign the company does not use beef in its pizzas given the culture of the country. It is important to mention that this has also made pizza hut a household name all over India. Along with Pizzas it also sells Great Indian Treat, Tandoori Treat in India, In china it sells Sangria and Escargot along with pizzas which makes the consumers feel at home and makes the company local even when it’s a foreign company (Kamaladevi, 2010). The products strategy for Pizza Hut stands to be highly concentrated on the taste and preference of the local consumers. It tries to focus on selling products which are highly preferable in a particular area. For instance when it sells its food in the locales of the Britain it emphasises on providing the authentic British taste which helps the company to gain interest among the consumers. The products in the global regions always differ since it helps to develop a strong market base overseas (Teng, 2010).
The pricing strategy of Pizza Hut is somehow kept the same even in the global market. But its marketing procedure or price skimming procedure are also tactfully handled. It is important to mention that the company provides numerous offers and freebies with a particular worth of buying which attracts people. In global markets like in India and Malaysia the company understands it has large market share and hence its skimming strategy doesn’t affect the sale and rather increases it given its effective and high quality food and wonderful receptions. Even in local market the company skimming strategy helps as most of the pizza companies have something better to offer like Papa John’s traditional pizza and Dominos buy one get one free offers (Srivastava, 2009).
Glocal strategy mainly the amalgamation of the local as well as the global strategy for marketing mix. It helps addressing both the international as well as the local market. As per the marketing theory Product mix of a company is extremely important to address both local and global needs and Pizza Hut has been successful in doing that. In global market where working people are off to work early and do not get time for lunch dining in a restaurant Pizza Hut has come up with the Pan Pizza for one which has been widely appreciated especially in USA and European nation. For the local market in America and to satisfy the local consumers Pizza Hut has come up with “The Big New Yorker Pizza” which is especially sold in the US and in no other countries to treat the local customers properly and continue the relationship with them. It is important to mention that most local market of Pizza Hut is highly competitive but due to the effective product strategy the company has retained its market shares (Varadarajan, 2010). It could be said that when Pizza Hut is addressing the local market with such catch lines it gives a similar kind of approach even to the global market. It is important to mention that when the company works in countries like India and Malaysia, China, Japan its marketing procedures make the brand local brand and it strategises its product development effectively. When working in the global market it uses taglines to attract consumers which are similar even for the local market. Globally the company has introduced many effective things which have helped the company to gain the global market share equally effectively. “Think Global Act Local” is another unique strategy that the company has got is the delivery system which has been effective enough for the company both locally and globally. It could be said that the 30mins pizza delivery challenge has been highly effective for the company in all parts of the world which has been immensely effective for the company. The company promises to make a pizza order delivery within 30mins from the time of booking which has become key concept in the pizza industry all over the world and has also helped to develop a strong platform for the company. This concept was initially launched in its local market which again justifies the company’s Glocal strategy especially in terms of products (Ding et al., 2010).
Similarly Pizza Hut has made its price a strong weapon to drive consumers and it has helped to gain upper hand in the market as the company has already proven its worth and quality in the market. Overall it could be said that the pricing strategy taken up by the company is effective both locally and globally given its quality food and commitments towards the consumers which has helped the company to come a long way (Beydoun et al., 2011).
In the study of marketing Segmentation, Targeting and positioning is given paramount importance. Especially targeting is extremely important. As per the classical theory of Marketing targeting could be defined as the choosing of a particular segment of audience to address in the market. Targeting is an extremely important concept for Pizza Hut and it emphasises highly on the effective targeting of the consumers not only locally but also globally since it is a globally recognised brand in the market. It is important to mention that there is huge amount of research that goes into the choice of markets to target.
Demographic Segmentation of the market: Age based Segmentation
The segmentation of the markets is done in a very prudent manner as the company focuses on addressing the global audience at the same time when it focuses to address the local consumers (Wood, 2011). Hence it becomes extremely important for the company to make its targeting decisions effectively. Normally Pizza Hut focuses on a specific market which has been segmented demographically based on age mostly. Even in the global arena the company focuses on targeting the consumers between the age group of 12 to 45 which involves the teenagers, the youths and the middle aged people. Hence it could be said that the segmentation is done demographically based on age and also regionally which helps the company to address the needs and wants of the customers from the different regions accordingly (Bostrom et al., 2013). The targeted age groups has been chosen by the company as it mainly focuses on informing and creating awareness about pizza among this age group which forms a substantial part of every country as well as since this age group is funny and adventurous and like to explore as well as taste different things they love pizzas designed by the company and hence this justifies the choice of the primary targeted audience of pizza hut (Terpstra et al., 2012).
Conclusion
The present study has discussed the key aspects of marketing mix and also discussed about the targeting and brand positioning of Pizza Hut. The present study has been able to make us understand the importance of the key components of the global marketing and communication which has helped to complete the study successfully.
References
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